ASSIGNMENT ON

Costa Coffee- Heathrow Terminal 4 Airside Issues In Operations & e!ommendations

"# SACHIN "A"AN SHIN$E CO% SE- M"A &Hospitalit' Mana(ement) ST%$ENT $ATA N%M"E -*+,-./ Tutor 0 Seth 1ouis Su23e!t 0 Operations Mana(ement

Sa!hin "a2an Shinde -*+,-./

Operations Mana(ement Issues-Costa Coffee

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Introduction
The Costa Story In +5*+6 Italian 2rothers Ser(io and "runo Costa started a wholesale operation suppl'in( roasted !offee to !aterers and spe!ialist Italian !offee shops7 $rawin( on their Italian 2a!8(round and Ser(io9s e:perien!e of 2lendin( and roastin( !offee in 4arma6 the 2rothers esta2lished Costa9s uni;ue roastin( st'le7 "eans were slow roasted at redu!ed temperatures to produ!e a fuller6less 2itter fla<our and a spe!iall' de<eloped espresso 2lend was !reated of si: parts ara2i!a and one part ro2usta to !reate Costa9s uni;ue taste7 "oth the roastin( pro!ess and their spe!ial 2lend Mo!ha Italia are mainsta's of the Costa 2usiness toda'7 The Costa 2rothers opened the first Costa store in 1ondon in +5*= and (rowth e:panded at the rate of two stores per 'ear with the help of their famil' and friends in the 2usiness7 In +5==6 the roastin( operation mo<ed to Old 4aradise Street in 1am2eth6 1ondon6 where the roaster and (reen 2eans &those waitin( to 2e roasted) are stored7 $e<elopments su!h as the new roaster were !ru!ial to Costa7 >ith hu(e (rowth o<er the +55/9s the !ompan' had in!reased to +=? stores 2' +555 and in .///6 ,7* million !ups of !offee were sold ea!h wee87 Costa is now the leadin( %@ 2randed !offee shop with o<er ,// stores and host units in a num2er of !omplementar' retail outlets6 in!ludin( sele!ted Otta8ers and >aterstones 2oo8stores6 >HSmith and Home2ase stores6Hotels and <er' important airports7 Facts and Figures today +7 Costa is the lar(est !hain of 2randed !offee shops in the %@ with o<er =// outlets .7 Costa !offee ma8es the 2est ;ualit' !offee 2e!auseA

All Costa !offee 2eans are slow roasted for .. minutes to ensure a smoother fla<our than ;ui!8 roastin(6 whi!h !an produ!e a 2itter taste Costa has ,/ 'ears Italian herita(e perfe!tin( the art of !offee ma8in( Costa sour!e and 2u' their own 2eans from all o<er the world

,7 Costa produ!es the 2est 2lends of !offee usin( ? different parts ara2i!a 2eans and + part ro2usta7Out of hundred per!ent =?B of ara2i!a and +4B of ro2usta7 47 At Costa6 we use our own spe!ialist "aristas in all of our stores6 who are trained the Italian wa' at our dedi!ated roaster'7 -7 Costa9s own Italian a!!redited Master oaster6 !urrentl' o<ersees the roastin( of appro:imatel' ,- tonnes of !offee per wee87 >ith the new roaster6 !apa!it' will nearl' dou2le to ?- tonnes per wee87 ?7 Costa !offee is made 2' hand6 rather than 2' the automated !offee ma!hines used in some other !hains7 *7 Costa offers !ustomers a Cairtrade !offee option6 whi!h !an 2e re;uested for an' of our !offees7 In addition to this all the traditional and Earl Gre' teas are from Teadire!t7 This is offered throu(h the partnership with CafDdire!t7 Sa!hin "a2an Shinde -*+,-./ Operations Mana(ement Issues-Costa Coffee 4a(e .

Products
Beverages:

"rewed !offees6Italian-st'le espresso6 !old 2lended 2e<era(es6 roasted whole 2ean !offees6 tea produ!ts6 fruit 3ui!e6 aerated !old drin8s6wine62eer7 Food:

Sandwi!h6 4aninis6 pastries6 Ca8es6 and Muffins Non food items:

Mu(s6 Tra<el tum2lers6 !offeema8ers6 !offee (rinders6 stora(e !ontainers6 seasonal no<elt' items6 Costa !ard7
Sa!hin "a2an Shinde -*+,-./ Operations Mana(ement Issues-Costa Coffee 4a(e ,

The Costa Coffee Coffees.

ES4 ESSO A short6 stron( and 2la!8 !offee6 with no mil87 ES4 ESSO $O44IO A dou2le espresso shot7 Cor those who li8e it stron(7 IST ETTO An e:tra short !offee6 e<en shorter than an espresso6 with an e<en stron(er fla<our7 MACCHIATO Espresso topped with 3ust a dash of mil87 AME ICANO Coffee6 mi:in( shots of espresso with hot water7 Add mil8 as per !ustomer re;uirement CA44%CCINO Coffee !om2inin( espresso with steamed6 froth' mil87 Cho!olate powder on top as per !ustomer re;uest7 CACCE 1ATTE Coffee made with steamed mil87 It is not as stron( as a !appu!!ino MOCHA Espresso with hot !ho!olate6 topped with steamed6 frothed mil87

Information about the Costa Coffee Heathrow Termina !

This shop on heathrow terminal 4 is lo!ated in airside near (ate =

opposite to world dut' free7 It opens 4am in mornin( till 57,/pm in ni(ht Its one of the shop of !osta !offee whi!h (enerates ma:imum re<enue with a<era(e sale of minimum E?/// dail'7 "e!ause it is on airside it sells spirits62eer and wine whi!h is not a<aila2le in a normal !osta !offee shops7 It does an a<era(e transa!tion of +*//-./// transa!tions dail'7 It has a staffin( of ., in!ludin( the store mana(er7 It operates with two tills and two !offee ma!hines7 $urin( operations in 2us' period the di<ision of staff is as follows

Two people on till Two people on !offee ma!hine6 one for toastin( the sandwi!hes6 one for refillin( the displa' of food and drin8s
Operations Mana(ement Issues-Costa Coffee 4a(e 4

Sa!hin "a2an Shinde -*+,-./

 One for !leanin( and !learin( the ta2les One on the dish washin( ma!hine
"ayout #iagram $f Costa Coffee and its Ste% by Ste% Process of $%eration Sitting -rea

Hand out -rea

Ti (
Coffee ,achine

#rin/ s #is% ay

Food #is% ay

Fridg e

.ri Frescato $ffice

Fridg e

0ue1"ine #ivider
Past ry #is% ay

ST&P '

&ntrance
Coffee ,achine

ST&P ! Ti ( ST&P ) ST&P *

ST&P (

Hand out -rea

#rin/ s #is% ay

Food #is% ay

ST&P +

Sitting -rea Sa!hin "a2an Shinde -*+,-./

Operations Mana(ement Issues-Costa Coffee

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E:planation of Steps in the 4ro!ess

Step + Customer !ome and stand in the lineF;ue

Step . Customer !hooses and ta8es food or drin8 from the displa'

Sa!hin "a2an Shinde -*+,-./

Operations Mana(ement Issues-Costa Coffee

4a(e ?

Step , Customer (oes to the till to order hisFher !offee6pastr'&!a8es6muffins)to sit in or ta8e awa' and if he has a 4anini to toast he (i<e it the person on the till7

Step 4
Sa!hin "a2an Shinde -*+,-./ Operations Mana(ement Issues-Costa Coffee 4a(e *

 The person on till ri(ht awa' (i<e the !offee order to the 2arista and (i<e

the 4anini to the person who he toastin( the sandwi!hes and (i<e him hisFher sandwi!h num2er so that he does not ha<e to wait until the sandwi!h is toasted and it will 2e ser<ed on the ta2le7

Step >hile 2arista is ma8in( !offee the person on the till sets the !ustomerGs

tra' li8e puttin( the ri(ht sau!erGs and spoons for the !ups and (lasses in whi!h the !offee is 2ein( made ser<in( an' pastr'6!a8e in the ri(ht plate with ri(ht !utler' as per the order7 4erson at the till ta8es mone'FCard from the !ustomer and !ompletes the transa!tion7

Sa!hin "a2an Shinde -*+,-./

Operations Mana(ement Issues-Costa Coffee

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Step Coffee is made read' 2' the 2arista he pla!e it on to the tra' or in ta8e awa' !ups and the !ustomer ta8es it from the handout !ounter ne:t to the !offee ma!hine7

Step ? Customer ta8es !offee from the handout !ounter and (o to the sittin( area and en3o's his !offee

Sa!hin "a2an Shinde -*+,-./

Operations Mana(ement Issues-Costa Coffee

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Issues in the $%erations

As !osta !offee has their own ser<i!e standards and ser<i!e pro!ess the

time ta8e to ser<e a !ustomer is ,-- minutes whi!h is time !onsumin( for a pla!e li8e airport where there is hi(h turno<er7 In !omparison to star2u!8s whi!h ta8es + to + and half minute to ser<e a !ustomer whi!h is more fast and effi!ient7
Sa!hin "a2an Shinde -*+,-./ Operations Mana(ement Issues-Costa Coffee 4a(e +/

 As its on airport there is a 2i( ;ueue all the time it 2e!ome <er' diffi!ult

to mana(e the ;ueue in 2us' period as people ha<e to wait some time for almost +--./mins and he (ets frustrated7 "ein( on airport airside its a hi(h se!urit' Hone area 2e!ause of this the deli<er' of produ!ts ta8es lot of time as it is s!anned and !he!8ed 2' the airport se!urit' authorit'7 $ue to hi(h se!urit' Hone if the !offee shop run out of an' food and drin8 sto!8 or non eata2le items li8e ta8eawa' !ups6lids materials the staff !an not (et it from from other !osta shops or store as if it would ha<e on a normal street7 In !offee ma8in( shops the main in(redient is mil8 whi!h some time is short or runs out and 2e!omes diffi!ult to (et it from outside due to se!urit' reasons7 On airport its <er' diffi!ult to fore!ast the num2er of !ustomers that will 2e ser<ed in a da'6man' times due to te!hni!al diffi!ulties and 2ad weather !onditions fli(hts are late or !an!elled 2e!ause of this the airport is 2us' as well as the !osta !offee shop and durin( this time !offee shop runs out of man' food and drin8 items7 There is a lot of staff turno<er and to emplo' a new person on airport airside is <er' diffi!ult as it re;uires a spe!ial pass to 2e made whi!h is time !onsumin( as the person has to show his past fi<e 'ears referen!e and then <erified it reall' ta8es a lon( time up to three to si: months7 $ue to airport and hi(h se!urit' Hone the stora(e area is <er' less spe!iall' storin( of perisha2le items su!h as mil8 and food items li8e sandwi!hes6paninis6it has a dr' stora(e room 2ut three floor down the shop whi!h is a 2i( disad<anta(e durin( the operations if somethin( is finished or runs out then the staff has to (o down three floors and (et it whi!h is <er' time !onsumin(7 $ue to shorta(e of staff it is <er' diffi!ult to ser<e the !ustomer in re(ular !erami! !ups and (lasses as there is no person to wor8 on dishwashin( ma!hine so the !ustomer is ser<ed in ta8e awa' !ups whi!h is not desira2le and not as per !osta standards 2ut due to pra!ti!al diffi!ulties 'ou ha<e to wor8 in this wa'7 Mana(er fa!es diffi!ulties to ma8e dut' rotaGs as he !annot fore!ast whi!h period of the da' will 2e the most 2usiest and he !an put more staff on rota durin( that shift and the operation runs smoothl'7

2ecommendations1So utions for smooth o%erations

Costa Coffee should redesi(n their ser<i!e modelFstandards a!!ordin( to the

lo!ation of the !offee shop to ha<e more ;ui!8 and effi!ient ser<i!e durin( operations rather than sti!8in( to old ser<i!e standards whi!h is more time !onsumin(7 $urin( 2us' period and 2i( ;ueueGs there should 2e a person spe!iall' assi(ned to (o to the !ustomers in the ;ueue and ta8e !offee orders and (i<e
Sa!hin "a2an Shinde -*+,-./ Operations Mana(ement Issues-Costa Coffee 4a(e ++

the orders in ad<an!e to the 2arista and (et his sandwi!h toasted so that till time rea!hes the till his !offee and sandwi!h is read' for him to !onsume hen!e ma8in( him feel happ' that he is 2ein( treated spe!ial7 Mana(er should 8eep same num2er of staff on e<er' shift to perform the operations smoothl'7 $urin( 2us' period mana(er should deplo' ri(ht people at ri(ht pla!es to perform the 3o2 more effi!ientl'7 Compan' and the Mana(er should 8eep the staff as happ' as the' !an to a<oid staff turno<er as it ta8es a lon( time to re!ruitment a new person on airport airside7 Staff should 2e pro<ided with free meals durin( shifts to 8eep them happ' and a<oidin( them from lea<in( the 3o27 Compan' should ma8e the airside side pass for permanent staff wor8in( outside airport whi!h is a <er' lon( pro!edure6as a result if there is a shorta(e of staff on airport shop staff from other shop and (o and wor8 ma8in( the operations more smooth7 $urin( 2ad weather and fli(ht !an!ellations its a 2i( opportunit' for the !offee shop to earn more re<enue 2ut as a result of hi(h !onsumption of mil8 to ma8e !offeeGs the mil8 runs out as an alternati<e to this the mana(er should ha<e (ood relationship with the similar food and drin8 shops from where the mil8 or an' material !an 2e 2orrowed till the time the deli<er' is arri<ed and return them their ta8en stuff 2a!87 Enou(h area should 2e (i<e to stora(e when desi(nin( of store spe!iall' !old store other important materials so that more thin(s !an 2e stored for the hi(h re<enue (eneratin( stores li8e on airport7 On airport people reall' donGt ha<e time to en3o' and rela: as the' ha<e to !at!h the fli(ht so the' ha<e <er' short time6!osta !offee on airport is su((ested to more fo!us on ser<in( on ta8e awa' !ups rather than in<estin( in !erami! !ups and (lasses hen!e usin( the person wor8in( in dish washin( in some other produ!ti<e area durin( 2us' operations7 Costa should fo!us on ;ui!8 and faster ser<i!e 2e!ause it is airport 2' operatin( 2oth the tills and !offee ma!hine all the time7

2eferences
htt%:11www.costa.co.u/1coffee1the3coffee.as%4

htt%:11www.costa.co.u/1coffee1costa3story.as%4

Sa!hin "a2an Shinde -*+,-./

Operations Mana(ement Issues-Costa Coffee

4a(e +.

Sa!hin "a2an Shinde -*+,-./

Operations Mana(ement Issues-Costa Coffee

4a(e +,

Sa!hin "a2an Shinde -*+,-./

Operations Mana(ement Issues-Costa Coffee

4a(e +4